MKS Instruments Inc (MKSI)
Fixed asset turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 3,529,000 | 3,260,000 | 3,377,000 | 2,924,200 | 2,300,900 |
| Property, plant and equipment | US$ in thousands | 771,000 | 784,000 | 800,000 | 326,000 | 284,300 |
| Fixed asset turnover | 4.58 | 4.16 | 4.22 | 8.97 | 8.09 |
December 31, 2024 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $3,529,000K ÷ $771,000K
= 4.58
The fixed asset turnover ratio measures how efficiently a company's fixed assets are being used to generate revenue. For MKS Instruments Inc, the trend of the fixed asset turnover ratio over the past five years is as follows:
- As of December 31, 2020, the fixed asset turnover ratio was 8.09, indicating that MKS Instruments generated $8.09 in sales for every $1 of fixed assets.
- By December 31, 2021, the ratio improved to 8.97, suggesting that the company became more efficient in utilizing its fixed assets to generate revenue.
- However, there was a significant decline in the fixed asset turnover ratio by December 31, 2022, to 4.22, signaling a decrease in the efficiency of MKS Instruments in utilizing its fixed assets to generate sales.
- This downward trend continued in 2023 and 2024, with the fixed asset turnover ratios dropping to 4.16 and 4.58, respectively. These lower ratios further indicate a continued decrease in the efficiency of utilizing fixed assets to generate revenue.
Overall, the analysis of MKS Instruments Inc's fixed asset turnover ratio highlights fluctuations in the company's efficiency in generating sales from its fixed assets over the five-year period, with improvements in some years and declines in others. Further investigation into the reasons behind these fluctuations would provide insights into the company's operational performance and asset utilization strategies.
Peer comparison
Dec 31, 2024